Business Loan Frequently Asked Questions

Business Loan Frequently Asked Questions

Many businesses utilize loans when a cash-flow shortage comes up. If you are new to running a small business,

you may have questions about obtaining a loan. The following frequently asked questions may be useful to you.

Credit Concerns

Does personal or business creditworthiness factor into obtaining a loan?

Absolutely! Banks will want to know your credit rating. Additionally, if your business has a credit history, they will want to know about that as well.

Working with Banks

Is it difficult to obtain a loan from banks?

Some banks are more difficult to work with than others. In all cases, they tend to scrutinize your finances in some detail. YOu may be denied a loan from a bank. Even if you obtain one, it can take a long time for a bank to make a decision.

Loan Mechanics

How do loans actually work?

Loans involve the lending of money with must be paid back with interest. Basically, there are two factors about any loan that you will want to know: the term and the interest rate charged. The loan term can be as short as a few months to as long as several decades; the loan must be paid back in full by the end of the term. The interest rate associated with the loan is the cost of financing that you pay the bank when you obtain the loan.

Alternative Financing

Are there other ways to finance a small business?

Yes. A number of other sources for business loans and alternative financing are available to you. Capital lending groups, in particular, offer a variety of alternative financing solutions and can deliver funding more quickly than most banks.

Connect with Dorra Financial Group

Here at Dorra Financial Group, we are sure that we have a commercial finance solution or other small business loan product that will be perfect for your business needs. Give us a call today.

How to get an SBA loan for your small business

How to get an SBA loan for your small business

The SBA is a central government agency offering small businesssses contracting, counseling, and capital. This agency does not lend money directly but instead outlines guidelines for loans structured by its partners, like credit unions, banks, micro-lending institutions, and community development organizations. The agency guarantees that part of these loans given out by these institutions will be paid, removing some risks for creditors. Through an SBA loan, the agency restricts the number of funds someone can borrow and ascertains specific interest rates lower than those offered by typical banks.

How Do These Loans Work?

SBA loans and credit lines are the same as the typical business loans granted by banks. The process begins when company owners apply. When approved, the borrower secures the capital and then pays it back after some time with interest.

How Do You Qualify For an SBA Loan?

To qualify for this loan, one must provide comprehensive financial details about your business to the SBA and the bank. This enables the agency to evaluate their eligibility and determine whether the loan favors the business and the agency.

What Is The Cost Of These Loans?

Like normal loans, these loans also have an interest cost. Additionally, borrowers pay various loan fees like credit checks, applications, and appraisal fees if the loan has collateral assets like real estate.

Apart from the typical fees, the loans also have a guarantee fee paid by borrowers in exchange for the agency guaranteeing part of the loan. However, this fee is based on the portion of the loan secured by the agency.

Advantages OF SBA Loans

A business owner can leap many benefits linked with SBA-backed loans. However, a person’s situation is usually unique to their business. Benefits of an SBA loan include:

  • Reduced interest rates
  • It is easy to qualify since the credit needed is lower
  • Flexible payment options
  • Longer repayment periods
  • More opportunities since it is easier to get an SBA loan based on the state of the world and the economy  

Are you looking for a reputable institution to grant you an SBA loan? Reach out to us today at Dorra Financial Group for more information.

How to Exceed Expectations and Customer Service in Social Media Settings

Social media has become a hub for customer interactions. Everything from engaging your target audience to customer service to marketing is all centralized on these platforms. While social media has become one of the most powerful tools available to many businesses, it is only beneficial when you know how to use it. If you want to improve your client relations and boost your service reputation using social media, here are a few must-try tips.

Monitor Your Reputation

Your online reputation will influence how your audience interacts with you, so if you want to better serve your clients, you need to understand what they think. Monitoring your online reputation will be essential foundational knowledge in customer interactions.

Use Public Comments and Direct Messages Carefully

In the world of social media, direct messages and public comments are crucial to your perceived service from your customers. How you respond and when you respond matter significantly. Public comments can showcase how you respond to issues and direct messages give you the opportunity to deep into the problem and find solutions.  When used correctly, you can harness the power of social media.

Don’t Forget to Respond to Direct Messages

While direct messages are presumed to often be private, these are just as important when responding to your customers. Even though this is an individual conversation, it requires the same level of care and respect as your public comments. If you wouldn’t say it in public, you shouldn’t send it through a direct message.

Always Respond Respectfully

Whether you are responding to public feedback and comments or a direct message, you need to always do so respectfully. Others will see your response and use your tone and response to assess your company. Whether you are thanking someone for a positive review or offering to address a problem through a direct message, you always need to do so with the utmost level of integrity.

Respond With Empathy

If you want to offer optimal customer service, you need to make sure that you are responding with empathy, compassion and care. Online interactions can often feel stilted and disingenuous; however, with a bit of care and compassion, you can show your customers that they mean a lot to you.

Know That Response Times Matter

In a world where everyone expects expediency, you need to know that your response time matters. Don’t let disgruntled customers or negative feedback go too long. Your lack of response or lag will speak much louder than words.

If you want to excel in your customer engagement, you need to offer exceptional customer service even in online environments.

Real Estate Vs Stocks: How to earn the best profit from your investment.

Real Estate Vs Stocks: How to earn the best profit from your investment.

One of the best ways to stay ahead of the curve financially is to make good investments. A common debate among investors is which investment is better: stocks or real estate. It turns out that both can be excellent and many investors have some of each in their portfolios.

Real Estate Investing: Pros and Cons

Many folks favor real estate for investment profit because it provides real and tangible assets for your investment dollars. You can invest in real estate with other peoples’ money, can use it as a tax shelter, and can receive passive income from it. Additionally, it can serve as a hedge against inflation.

Some of the best ways to invest in real estate include:

  • Investing in rental properties
  • Purchasing shares of real estate investment trusts (REITs)
  • Fixing and flipping properties, and
  • Participating in a real estate rental group (REIGs)  

On the other hand, some real estate investments can take a lot of time to find and fund. Real property tends to be expensive and is relatively illiquid. In some cases, high transaction fees may be involved.

Stock Investing: Pros and Cons

Stocks, representing equity ownership in publicly traded companies, can produce excellent investment profit. Stocks provide a number of positive benefits for investors. These include relative liquidity, ease of diversification, and relatively low cost of initial inventment. These days, many stocks can be bought commission-free.

On the downside, investors must be prepared for volatility when investing in the stock market. A bear market situation, often catalyzed by rising interest rates, can rapidly erode the value of a stock portfolio.

Partner With Dorra Financial Group

Many investors look to participate in both asset classes to achieve high investment profit. Look to Dorra Financial Group should you need financing for real estate investments. They will help you select the right option that fits your needs perfectly.

Financing Pitfalls to Avoid When Starting Your Business

Financing Pitfalls to Avoid When Starting Your Business

Entrepreneurs starting up businesses typically seek financing options. However, many of them are unaware of the risks involved in making unwise funding decisions. Here are some of the most common mistakes to avoid when you are looking for business financing.

Limiting Your Search

When you are searching for the right business financing, it is a mistake to approach only one lender. Instead, you should compare what a number of lenders have to offer so that you can find the terms that best suit the needs of your company.

Approaching the Wrong Lenders

Most lenders have specific criteria concerning the businesses they are willing to work with. Approaching lenders that are the wrong fit for your company will only waste your time and cause frustration.

Not Sufficiently Vetting Lenders

Of the many lenders that advertise their services, not all are reputable. Before you agree to work with a lender, you should investigate them. Look to the Better Business Bureau, the website of your Secretary of State, trade associations, and the website of the International Franchise Association for comments and complaints.

Lack of Preparation

Before offering you business financing, lenders want assurances that you will be able to pay them back. To prove that you can repay the loan, you need to provide a business plan that includes an explanation of your company’s income sources and a clear projection of future finances.

Lack of Patience

It is easy to become intensely frustrated when you are seeking business financing. Have patience, and project a timeline for funding that is realistic and achievable.

Not Realizing the Risks

Failure to repay a loan means the loss of any collateral you have put up, which may even include your home. Before you take on the responsibility of business financing in the form of a loan, be sure you are confident that your company is running well and that you can meet your obligation to repay.

For more advice on business financing, get in touch with Dorra Financial Group.